Royal Bank of Scotland economists believe countries in Asian will strengthen their currency in order to rein in domestic inflationary pressures. And with most regional economies doing well, the bank believes this should not harm export competitiveness. Currencies are in emerging Asia are unlikely to weaken in the foreseeable future despite domestic inflationary pressure which is typically bad for them, economists at Royal Bank of Scotland have argued.
“Asian currencies remain a one-way bet and there is little need to hedge exchange rate exposure,” Erik Lueth, senior economist at RBS wrote today (April 26).
Rising inflation levels typically forces affected countries to depreciate their currencies.
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